Koo Yoon-cheol Meets Exporters "Please Cooperate to Stabilize the Exchange Rate"

With the won–dollar exchange rate settling in the mid-to-high 1,400 won range, Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-cheol met with export companies and requested cooperation to stabilize the exchange rate.

According to the Ministry of Economy and Finance on the 18th, Koo held a 'meeting with major export companies' at 3 p.m. at the Government Complex Seoul. Companies in attendance included Samsung Electronics, SK Hynix, Hyundai Motor Company and Kia, Hanwha Ocean, and POSCO Holdings.

At the meeting, Koo asked for cooperation, saying, "We plan to promote exchange-rate stability by consulting with export companies, the main supply-and-demand players, to improve structural foreign exchange supply and demand." The ministry said, "Companies agreed that stability in the foreign exchange market would help smooth business activities and decided to actively participate in forthcoming discussions."

The request is interpreted as asking companies to actively convert dollars received as export payments into won amid the continued high exchange-rate situation. At the Seoul foreign exchange market that day, the won/dollar exchange rate closed the week's trading at 1,465.30 won, up 7.30 won from the previous day. This was analyzed as a result of continued net selling of domestic stocks by foreign investors. So far this year, of 213 trading days, the exchange rate has exceeded 1,400 won on 119 trading days.

Koo said, "To enhance exporters' competitiveness, we increased next year's export support budget from 1.6 trillion won this year to 4.3 trillion won next year," adding, "We are preparing export diversification measures such as expanding the free trade agreement (FTA) network and strengthening cooperation with the Global South, and we will actively pursue regulatory rationalization measures with related ministries to enable freer corporate activities."

Reporter Lee Kwang-sik bumeran@hankyung.com